Second home cost
Discussion
I’m seriously considering a second home near the coast, preferably the isle of Purbeck in Dorset. It’s been a fantasy of mine for many many years.
Has anyone bought one recently? Just wondering what all the fees, taxes and mortgage would equate to on a property up to 500k? Overall and monthly. Presume a 10% deposit and very good credit rating.
I know I can find this out... I’m just being lazy
and hope someone’s just been there ...and got the t-shirt
Has anyone bought one recently? Just wondering what all the fees, taxes and mortgage would equate to on a property up to 500k? Overall and monthly. Presume a 10% deposit and very good credit rating.
I know I can find this out... I’m just being lazy
and hope someone’s just been there ...and got the t-shirtSim75 said:
I’m seriously considering a second home near the coast, preferably the isle of Purbeck in Dorset. It’s been a fantasy of mine for many many years.
Has anyone bought one recently? Just wondering what all the fees, taxes and mortgage would equate to on a property up to 500k? Overall and monthly. Presume a 10% deposit and very good credit rating.
I know I can find this out... I’m just being lazy and hope someone’s just been there ...and got the t-shirt
15% as a minimum....Has anyone bought one recently? Just wondering what all the fees, taxes and mortgage would equate to on a property up to 500k? Overall and monthly. Presume a 10% deposit and very good credit rating.
I know I can find this out... I’m just being lazy
and hope someone’s just been there ...and got the t-shirtWe have been trying (our best) to get a second home for the last year (hi sarnie!!)
From my rough figures
Mortgage fees (say 2k to be on the safe side - could be less but just finger in air number)
Solicitor fees (say 1k)
Stamp duty (currently 3% on sub 500k)
So on 500k you will need roughly £18k for fees.
Then stuff to kit the place out will depend on the size but you are talking
Beds and bedding and bed side tables
Kitchen stuff, crockery and cutlery.
Electronic goods, kettle, tv, toaster, microwave.
Washing machine
Towels etc
Sofa, kitchen table, garden furniture etc.
On a budget you could probably do all that for £3k.
If you went more top end then a lot, lot more. We budgeted £8-10k for a 3 bed with 2 baths.
Also dont forget stuff like broadband, council tax and insurance.
Little things like the house / flat etc will use electricity even when you are not there. Things like alarm if its not got one and cctv would be handy.
From my rough figures
Mortgage fees (say 2k to be on the safe side - could be less but just finger in air number)
Solicitor fees (say 1k)
Stamp duty (currently 3% on sub 500k)
So on 500k you will need roughly £18k for fees.
Then stuff to kit the place out will depend on the size but you are talking
Beds and bedding and bed side tables
Kitchen stuff, crockery and cutlery.
Electronic goods, kettle, tv, toaster, microwave.
Washing machine
Towels etc
Sofa, kitchen table, garden furniture etc.
On a budget you could probably do all that for £3k.
If you went more top end then a lot, lot more. We budgeted £8-10k for a 3 bed with 2 baths.
Also dont forget stuff like broadband, council tax and insurance.
Little things like the house / flat etc will use electricity even when you are not there. Things like alarm if its not got one and cctv would be handy.
Sim75 said:
I’m seriously considering a second home near the coast, preferably the isle of Purbeck in Dorset. It’s been a fantasy of mine for many many years.
Unless you're going to use it a LOT, don't do it. There will always be something that needs paying, cleaning, fixing or mowing.Have a think about what else you could do with the money in the way of investment, and probably much more tax-efficiently. Then spend that money going where you want, when you want. (No stamp duty, no council tax, no enhanced rate capital gains tax, no bills, no repairs...)
One way to test the water is to take a longer term rental in the area and see how much you use it. Bearing in mind that just the miscellaneous costs of buying the place are likely to be £20k-£25k you don't want to get it wrong.
We’re currently in the process of buying a holiday home at a little below your budget. We flip flopped on the idea for a couple of years before deciding to go for it this summer when we settled on the right area to buy in having been indecisive previously. We know a few families which have had second homes for decades and got a lot of pleasure out of them so we’re confident that we will do too, especially as we have very young kids.
We reckon that £10k will cover all the stuff to fit it out with 3/4 bedrooms and 2 shower rooms, although it has fitted wardrobes and we only need a fridge freezer for the kitchen as it has integrated appliances. I can’t tell you the mortgage cost off the top of my head as my wife has sorted it - and it’s only for 3 years - however I can tell you that Sarnie is the man for the job
Something to bear in mind is how easy the property will be to maintain long term: we originally looked at Victorian houses as we liked the character of them and the high ceilings but we were concerned about the upkeep particularly as you really don’t want to be tinkering with a house while you’re on holiday, or getting trades to do it for you remotely, so we choose a fairly modern one instead.
Good luck!
We reckon that £10k will cover all the stuff to fit it out with 3/4 bedrooms and 2 shower rooms, although it has fitted wardrobes and we only need a fridge freezer for the kitchen as it has integrated appliances. I can’t tell you the mortgage cost off the top of my head as my wife has sorted it - and it’s only for 3 years - however I can tell you that Sarnie is the man for the job
Something to bear in mind is how easy the property will be to maintain long term: we originally looked at Victorian houses as we liked the character of them and the high ceilings but we were concerned about the upkeep particularly as you really don’t want to be tinkering with a house while you’re on holiday, or getting trades to do it for you remotely, so we choose a fairly modern one instead.
Good luck!
covmutley said:
That would be a lot more fun and is a lot of boat for the money! anonymous said:
[redacted]
Sounds logical to me. He means you’d be paying 3% SDLT, which is what you’d have paid on a £500k primary residence house before the stamp duty holiday kicked in. Yes it’s still 3% more than a primary residence, because a primary residence at £500k has no Stamp Duty at the moment.
We bought a second home last year. Not in a holiday destination, and mainly because I had been working in the Derby, Stoke on Trent or the West Midlands for 10 years, living away from home during the week out of a suitcase.
Budget was going to be £130k ended up spending £175k on the house, putting a 25% deposit down (which would make obtaining consent to let easier at a later date)
Morgage fees were £300, surveyer who was experienced in period properties, £350, solicitor and searches £1200. Stamp duty. I forget.
We negotiated all the white goods and some furniture in the price. White goods are worn out.
Costing £220 interest, 150 council tax and other bills are about £150 a month.
Paying off the mortgage is a saving plan and not a cost, more an investment.
We are now living in it every other week Wednesday to Wednesday, whilst I work 1 day a week near the m69, an hours drive away.
I say it's not a holiday destination, but we are 15 mins from the Chutnet Valley, 40 mins from.the edge of the Staffordshire moorlands, 40.mins from Dove Dale, and it's in a nice Market town which is quite nice in a 1990s sort of way.
Budget was going to be £130k ended up spending £175k on the house, putting a 25% deposit down (which would make obtaining consent to let easier at a later date)
Morgage fees were £300, surveyer who was experienced in period properties, £350, solicitor and searches £1200. Stamp duty. I forget.
We negotiated all the white goods and some furniture in the price. White goods are worn out.
Costing £220 interest, 150 council tax and other bills are about £150 a month.
Paying off the mortgage is a saving plan and not a cost, more an investment.
We are now living in it every other week Wednesday to Wednesday, whilst I work 1 day a week near the m69, an hours drive away.
I say it's not a holiday destination, but we are 15 mins from the Chutnet Valley, 40 mins from.the edge of the Staffordshire moorlands, 40.mins from Dove Dale, and it's in a nice Market town which is quite nice in a 1990s sort of way.
smckeown said:
Some councils charge additional rate council tax for 2nd homes
Yup. We’ve had a place on the IOW for quite some time....used to get a discount, now it is the same as if it were our primary residence. That’s fair enough, in my view.Oh, & if you let it out as a holiday cottage, the council there will sting you for £500 for refuse collection. Perhaps a bit less fair (again, in my view!)....thank goodness for private collection alternatives!
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